Determine the most appropriate way to implement a chosen strategy.

Assignment Brief

MODULE TITLE: Strategic Planning for the Hospitality Industry

Assessment Scenario:

You are to assume the role of a hospitality consultant undertaking a strategic analysis of an institution, company or enterprise of your choice that is operating in the hospitality industry. Hospitality organisations typically operate within a network of service organisations and are often interdependent and interrelated. Therefore, the organisation that you may wish to consider include, within the following sector:

• Leisure, recreation and entertainment venues
• Hotels, hostels, resorts, camping grounds, bed & breakfast establishments
• Restaurants, bars, clubs and cafes
• Travel agents, tourism operators, transport
• Travel and tourism association

Assessment Questions:

1. Critically analyse the factors affecting the successful implementation of strategies on the following business functions(LO 4),
   • Leadership 
   • Structural Design 
   • Information and Control Systems
   • Human Resources
2. Analyse and evaluate the different performance metrics of your chosen organisation and how this may affect the effectiveness of the business strategies?,
   • Critical Success Factors (CSFs) 
   • Key Performance Indicators 
   • The Balance Scorecard
3. Critically evaluate key elements (Diagnosis, change agents, managing change programmes and levers for change) in managing strategic change and leading types (Adaption, Reconstruction, Revolution and Evolution) of strategic change.
4. Determine the most appropriate way to implement a chosen strategy.
5. Critically evaluate current and future strategies with regard to their likely effectiveness.

Sample Answer

Strategic Planning for the Hospitality Industry

Case Study: Serenity Stays Hotel Group

1. Factors Affecting the Successful Implementation of Strategies

Strategic planning in hospitality must consider multiple internal and external factors that impact performance and service delivery. For Serenity Stays, the following functional areas are key to successful strategy execution:

a) Leadership

Effective leadership is vital for aligning the vision and strategy of the hotel chain. Transformational leadership, which motivates and empowers staff, encourages innovation and continuous improvement. If leadership is weak or inconsistent, strategic goals may not be communicated clearly, leading to resistance or confusion.

b) Structural Design

A flexible organisational structure is crucial in hospitality due to changing guest needs and seasonal fluctuations. Serenity Stays uses a decentralised structure, allowing local managers autonomy to adapt strategies to specific market conditions. This enables quicker decision-making and responsiveness but requires strong coordination across branches.

c) Information and Control Systems

Integrated control systems like PMS (Property Management Systems) and CRM tools help in managing bookings, customer feedback, and financial data. Real-time data reporting allows Serenity Stays to monitor performance across all locations. Without such systems, strategic decisions may rely on outdated or inaccurate information.

d) Human Resources

Skilled and engaged staff are key to hospitality success. HR strategies like training, development, and reward systems must align with the overall strategy. High staff turnover is a common challenge in the industry and can undermine consistent service delivery. Serenity Stays invests in continuous training and internal promotions to retain talent and support strategic goals.

2. Performance Metrics and Their Impact on Business Strategies

a) Critical Success Factors (CSFs)

For Serenity Stays, CSFs include customer satisfaction, online reputation, and occupancy rates. These are core elements that must be met to achieve strategic goals. Failure to deliver on these metrics can harm brand trust and revenue.

b) Key Performance Indicators (KPIs)

Common KPIs used by the hotel group include:

• Average Daily Rate (ADR)

• Revenue per Available Room (RevPAR)

• Guest satisfaction scores (from online platforms like TripAdvisor)

• Staff turnover rate

Tracking KPIs helps managers evaluate which strategies are working and adjust operations where needed.

c) Balanced Scorecard

Serenity Stays uses the Balanced Scorecard approach to align short-term operations with long-term strategy. It evaluates:

• Financial performance (e.g., profit margins)

• Customer perspective (e.g., loyalty rates)

• Internal processes (e.g., housekeeping efficiency)

• Learning and growth (e.g., staff development)

This holistic view helps the hotel maintain focus across all key strategic areas, not just profit.

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